LNNFH Senior Managers Performance Management Improvement

Performance appraisal (performance evaluation) is a systematic project. It is defined as:the process and methods under established strategic objectives are taken to assess the staff work behavior and performance achieved, using specific criteria and indicators, in order to generate the positive guidance to the results of the future employees work behavior and performance. In the view of above concept we can get the purpose and significance of the performance appraisal more clearly. By combining the staffs’ working goals with the corporation’s strategies, it will improve the consistency between the staff and corporation, and then achieve the win-win improvement.With the continuous changes of the market competition, the modern banks have established the performance appraisal system, focusing on the performance and quality. Under this system, they highlight the importance of the asset quality and have improved the stability of operating activities; they increase the weights of intermediary service and retail business in the evaluation system and have optimized the structure of profit; they imported the philosophy of economic capital constrain and have strengthened its bound on quantity of risk assets. However there are still many reforms and improvements should be implemented, which have influenced the long-term development of bank sector, because the imperfection in its evaluation institution and methods of performance.As a policy bank, LNNFH has established the framework of modern bank, resulting in the remarkable achievement, while playing the role of the pillar in rural financial system. Although there are a number of similarities of performance appraisal existing between the commercial banks and LNNFH, some distinctions still can’t be neglected. At the beginning, this paper makes the research on current performance appraisal system of LNNFH. Then, it takes a compare with the commercial banks’. At last, the paper concludes the defect of LNNFH’s performance appraisal system and points out the future research direction.